Printing pick-up puts Heidelberg on target

It has still got a long way to go to put behind it the year that saw it sell its Digital Division to Kodak and its Web Division to Goss. Including the losses of Euro 62 million for the discontinued divisions, the result after taxes was Euro -59 million for the period under review (previous year: Euro -129 million).

On the bright side sales are up eight per cent and incoming orders of Euro 1.9 billion represent an increase of 23 per cent on the previous year.

“After the difficult last three years, the print media industry is gradually picking up,” said Bernhard Schreier, CEO. “The high order levels, boosted by drupa, will start to show up in the Company’s sales figures over the next few quarters.”

The operating result of the Heidelberg Group was Euro 27 million in the second quarter (previous year: Euro 11 million). In the first half year overall, the Group achieved a positive operating profit of Euro 6 million.

Heidelberg’s CFO, Dr. Herbert Meyer, explains: “Despite high non-recurring trade-show costs, we already achieved a positive operating result after six months. Our efficiency-enhancing measures are taking hold, while increasing sales are delivering profit contributions and putting us on course to meet our targets for the year as a whole.”

As of September 30, 2004, the Heidelberg Group had a workforce of some 19,000 worldwide (previous year: 23,700). Overall, staff levels decreased by around 3,700 in the first half year. Most of these staff members were transferred to Kodak and Goss when the Digital and Web Systems divisions were sold. By the end of the financial year, the number of Heidelberg employees will be reduced by a further 300, as planned.

In the Press Division (offset printing), sales rose by 10 per cent in the first six months to around Euro 1.2 billion. Despite the burden of trade-show costs, the operating result for the second quarter was Euro 22 million (same period last year: Euro 14 million).

In the Postpress Division, sales increased in the first six months to Euro 150 million (previous year: Euro 143 million). Incoming orders rose to Euro 179 million (previous year: Euro 166 million). The operating result improved to Euro -12 million (same period last year: Euro -22 million).

In the current financial year 2004/2005, Heidelberg is aiming for an increase in sales of at least five per cent over the previous year on a comparable basis. The Company is projecting an improvement in earnings over the previous year. Its target is to achieve an operating return on sales including all special effects of about five per cent. Overall, Heidelberg is projecting net profit in at least the mid-double-digit million euro range.